Financing over 10 years with 5% special repayment

Because you all assume that the house would be that expensive... So I think maybe the house isn't that expensive after all, rather that the plot of land already costs 500k€? Probably Munich.

best regards

That has already been asked, and there was no answer.

We ask the wrong questions, and give the wrong answers.

It was also asked for an assessment – and the information available is sufficient for that.

Costs of the entire project are just under 1 million, 240k equity, the rest financed over 10 years with low repayment and planned high special repayment.
Income approx. 7k, whereby due to a planned 2nd child both the cost side increases and possibly the income side decreases.

Question from the OP: Is this a reasonable financing?

Unanimous opinion of the forum members: No!

I can only repeat my reasons for the "No".

- The flexibility aimed for by special repayments is a pipe dream. To avoid a possible insolvency after the fixed interest period, the special repayments are mandatory – not optional. Thus, one is not flexible and deceives oneself if one thinks otherwise.

- Relying on ongoing bonuses is a gamble that I consider irresponsibly risky with a family.

- Better would be more repayment, longer fixed interest period, and a special repayment amount that can actually be optional and therefore truly flexible.

- Even better would be to build approximately 150k cheaper.

It was also about assessments - and the information available is sufficient for that.

Total project costs just under 1 million, 240k equity, the rest financed over 10 years with low repayment and planned high special repayments. Income around 7k, whereby due to a planned second child both the cost side may increase and possibly the income side may decrease.

OP's question: Is this a sensible financing?

Unanimous opinion of the forum members: No!

I can only repeat my reasons for the "No."

- The flexibility aimed for by special repayments is a pipe dream. To avoid a possible insolvency after the fixed interest period, the special repayments are mandatory - not optional. Thus, one is not flexible and deceives oneself if one thinks otherwise.

- Relying on ongoing bonuses is a gamble that I consider irresponsibly risky with a family.

- Better would be higher repayments, longer fixed interest period, and a special repayment amount that can actually be optional and thus genuine flexibility.

- Even better would be building about 150k cheaper.

A very good summary or conclusion, if nothing more comes from the OP.

That's exactly how it is.

Well, every bank is looking forward to him. Lots of loans, hardly any repayment. Special repayment questionable, therefore a lot of interest income.

Well, every bank looks forward to him. Lots of loans, hardly any repayment. Prepayment questionable, ergo lots of interest income

I wouldn't be so sure about that. Since the Residential Mortgage Credit Directive, banks are legally required to grant only such financings that are at least theoretically repayable by retirement. The bonuses are not fixed, therefore non-existent for the bank. In my opinion, they are not allowed to sell a structure as conceived by the OP; the annuity would have to be significantly higher.